1.1 Where an application for a licence is made by a corporation, a separate application shall be made in the corporate name by any shareholder to whom has been issued or who is entitled to more than one-half of the issued shares of the corporation. O. Reg. 760/94, s. 2.

2. (1) No individual, partnership or corporation shall act as an agent unless the individual, partnership or corporation is licensed under this Regulation. O. Reg. 760/94, s. 2.

(2) Subsection (1) applies to an individual, corporation or partnership who acts as an agent even if they are an employee, director, officer, shareholder or partner of an agent licensed under this Regulation. O. Reg. 760/94, s. 2.

3. (1) An application for an agent’s licence shall be accompanied by,

(a) the certificate of an insurer certifying that the applicant is appointed to act as the insurer’s agent; and

(b) a statement by the insurer indicating that it is satisfied that the applicant is suitable to carry on business as an agent. O. Reg. 760/94, s. 3 (1).

(1.1) Subsection (1) does not apply to an application by a corporation or partnership for a life insurance licence. O. Reg. 760/94, s. 3 (1).

(1.2) If the applicant is a partnership, the application shall state the date of the formation of the partnership. O. Reg. 760/94, s. 3 (1).

(2) Where an application for a licence is made by a corporation, the application shall be accompanied by,

(a) a copy of the Act or instrument of incorporation and of the by-laws;

(b) the names of the directors and officers of the corporation and of any shareholders who hold shares that entitle them to voting rights, the addresses of their places of residence, their occupations and, in the case of the shareholders, the number and class of shares held; and

(c) the names of all individuals, corporations and partnerships that are authorized to act as agents on behalf of the applicant. R.R.O. 1990, Reg. 663, s. 3 (2); O. Reg. 760/94, s. 3 (2).

(3) No licence shall be issued to a corporation unless the objects of the corporation as stated in its act of incorporation, or instrument of incorporation, are expressly stated to be for the purpose of acting as an agent for the class or classes of insurance agency specified in the InsuranceAct and for which the licence is applied for or for such other purposes as are approved by the Superintendent as being consistent with the provisions of the InsuranceAct and the business of an insurance agency. R.R.O. 1990, Reg. 663, s. 3 (3); O. Reg. 760/94, s. 3 (3).

4. (1) An applicant for a licence shall be granted a licence where the Superintendent is satisfied that the applicant,

(a) is of good character and reputation;

(b) is possessed of a reasonable educational background, if the applicant is an individual;

(c) if previously employed or engaged in business, has a satisfactory record in such employment or business;

(d) has passed a qualifying examination set by the Superintendent for the purpose, if the applicant is an individual;

(e) is otherwise a suitable person to receive a licence;

(f) intends to hold himself, herself or itself out publicly and carry on business in good faith as an agent;

(g) has not made the application for the purpose of obtaining a licence to act as an agent in respect of any particular risk or risks or directly or indirectly to obtain an agent’s commission for insurance on the applicant’s own life or property or on the lives or property of the applicant’s family, employer or fellow employees;

(h) is not in a position to offer inducement or use coercion or undue influence in order to control, direct or secure insurance business and, if the applicant is a corporation, no director, officer, shareholder or employee of the corporation is in a position to offer inducement or use coercion or undue influence in order to control, direct or secure insurance business. R.R.O. 1990, Reg. 663, s. 4 (1); O. Reg. 760/94, s. 4 (1-5).

(2) Without limiting the generality of clause (1) (h), if the application is for a licence referred to in clause 393 (2) (b) or (c) of the Act, the applicant shall be deemed to be in a position to offer inducement or use coercion or undue influence in order to control, direct or secure insurance business if the applicant is,

(a) an officer or employee of a bank, trust company, loan company or finance company;

(b) an assessor, tax collector or issuer of building permits;

(c) a doctor or a dentist;

(d) a person engaged directly or indirectly in the manufacturing, repairing, servicing or selling of automobiles or in supplying parts or accessories therefor, or an employee of such person;

(e) a lawyer or an employee thereof;

(f) an employer of employees other than those employed solely for the business of the insurance agency or for the businesses referred to in clauses 5 (6) (a) and (b);

(g) a foreman or payroll agent;

(h) an accountant, auditor or trustee in bankruptcy;

(i) a magistrate or police officer;

(j) a member of the clergy or a minister;

(k) an officer or employee of an automobile association or club or an agent thereof;

(l) a mortgage broker who is not also registered as a real estate broker under the Real Estate and Business Brokers Act;

(m) a full-time employee of the Government of Canada or any branch thereof, of any municipal or provincial government in Canada or any branch thereof or of a Crown corporation;

(n) an employee of a brewery, brewery warehousing company or a person engaged in handling or dispensing beer or spirituous liquors;

(2.1) Subsection (2) does not apply if the applicant is also applying for a life insurance licence or if the applicant already holds a life insurance licence. O. Reg. 760/94, s. 4 (8).

(2.2) Without limiting the generality of clause (1) (h), if the application is for a life insurance licence, the applicant shall be deemed to be in a position to offer inducement or use coercion or undue influence in order to control, direct or secure insurance business if the applicant is,

(a) an officer or employee of a bank or other deposit-taking institution, a loan corporation or a finance company;

(b) a doctor or a dentist;

(c) a lawyer or an employee thereof;

(d) an accountant, auditor or trustee in bankruptcy;

(e) a police officer;

(f) a member of the clergy or a minister;

(g) a mortgage broker who is not also registered as a real estate broker under the Real Estate and Business Brokers Act;

(h) a full-time employee of the Government of Canada or any branch thereof, of any municipal or provincial government in Canada or any branch thereof or of a Crown corporation;

(i) a person occupying office space in the office of any person referred to in clauses (a) to (h). O. Reg. 760/94, s. 4 (8).

(3) Subject to section 6, a licence may be granted to an applicant who is a non-resident of Ontario and who produces a certificate from the Department of Insurance of the province or territory of Canada or the state of the United States of America in which the applicant is resident that certifies that the applicant is licensed for the class of insurance for which the application is made. R.R.O. 1990, Reg. 663, s. 4 (3); O. Reg. 760/94, s. 4 (9).

(4) Revoked: O. Reg. 760/94, s. 4 (10).

5. (1) A licence referred to in clause 393 (2) (b) or (c) of the Act or the renewal of such a licence shall not be granted unless,

(a) the applicant is working or intends to work as an agent on a full-time basis; and

(b) the sole business, occupation or employment of the applicant is that of an agent. O. Reg. 760/94, s. 5.

(2) Subsection (1) does not apply if the applicant is also applying for a life insurance licence or if the applicant already holds a life insurance licence. O. Reg. 760/94, s. 5.

(3) A life insurance licence or the renewal of a life insurance licence shall not be granted to an individual unless the applicant intends to have his or her sole business in the provision of financial services. O. Reg. 760/94, s. 5.

(4) Subsection (3) does not apply if the applicant has held a life insurance licence for at least two years and,

(a) the applicant has passed the Level II life insurance examination; or

(b) the Superintendent is satisfied that the agent has the qualifications tested by the Level II life insurance examination. O. Reg. 760/94, s. 5.

(5) Subsections (1) and (3) do not apply to an applicant who carries on the main portion of his, her or its business as an agent in a township having a population of less than 10,000 or in any other municipality having a population of less than 5,000. O. Reg. 760/94, s. 5.

(6) Subsections (1) and (3) do not apply to an applicant who,

(a) carries on business as a travel agent registered under the Travel Industry Act and whose activities as an agent are restricted to travel, accident and baggage insurance; or

(7) The Superintendent may require an applicant for a licence or renewal of a licence to verify by statutory declaration that,

(a) for the purpose of subsection (1), the applicant complies with clauses (1) (a) and (b); or

(b) for the purpose of subsection (3), the applicant intends to have his or her sole business in the provision of financial services. O. Reg. 760/94, s. 5.

6. No licence shall be issued to a corporation incorporated or with its head office outside Canada or to a partnership in which any partner is resident outside Canada unless the corporation or partnership held a licence on July 6, 1961 and was one to which a predecessor of this section applied on that date. O. Reg. 760/94, s. 5.

7. A licence shall not be issued to an applicant who is not a corporation and who carries on business alone in a name other than the applicant’s own, except that a licence may be issued where the applicant has purchased the business and uses the name of the seller together with the applicant’s own for a period not exceeding three years. R.R.O. 1990, Reg. 663, s. 7.

8. (1) A licensee shall not act as a real estate salesperson for a real estate broker who is not licensed under this Regulation. R.R.O. 1990, Reg. 663, s. 8 (1).

(2) A licensee who also holds a licence as a real estate broker shall not pay commission on insurance to any salesperson or other person, whether employed by the licensee or not, who is not licensed under this Regulation. R.R.O. 1990, Reg. 663, s. 8 (2).

9. (1) The licence of an individual expires on the first anniversary of his or her birth that follows the second anniversary of the date the licence was last issued or renewed. O. Reg. 760/94, s. 6.

(2) The licence of a corporation expires on the first anniversary of the corporation’s incorporation that follows the second anniversary of the date the licence was last issued or renewed. O. Reg. 760/94, s. 6.

(3) The licence of a partnership expires on,

(a) the first anniversary of the date specified under subsection 3 (1.2) that follows the second anniversary of the date the licence was last issued or renewed; or

(b) if the licence was last issued or renewed before Ontario Regulation 760/94 came into force, on January 1, 1997. O. Reg. 760/94, s. 6.

(4) Subsections (1) to (3) do not apply if a different expiration date is specified in the licence. O. Reg. 760/94, s. 6.

10. (1) An application for renewal of a licence shall be made in the same manner as for a licence in the first instance. R.R.O. 1990, Reg. 663, s. 10 (1).

(1.1) Despite subsection (1), subsection 3 (1) of this Regulation and subsections 393 (3) and (4) of the Act do not apply in respect of an application for the renewal of a life insurance licence if the applicant has held the licence for at least two years and,

(a) the applicant has passed the Level II life insurance examination; or

(b) the Superintendent is satisfied that the agent has the qualifications tested by the Level II life insurance examination. O. Reg. 760/94, s. 7 (1).

(2) The Superintendent may require an applicant for renewal of licence to file,

(a) a return, verified by a statutory declaration, showing the applicant’s accounts payable and accounts receivable, together with the time when each account receivable first became due;

(b) a financial statement of the applicant’s insurance agency operations, verified by a chartered accountant, certified public accountant or similarly qualified person;

(c) a statement certifying what continuing education courses have been completed by the applicant since the licence was issued or last renewed;

(d) a statement certifying that the applicant maintains errors and omissions insurance in accordance with section 17; and

(3) An application for renewal of a licence may be refused on any grounds upon which an original application for a licence may be refused. R.R.O. 1990, Reg. 663, s. 10 (3).

(4) An application for renewal of a life insurance licence may be refused if the applicant is not in compliance with section 17 or 18. O. Reg. 760/94, s. 7 (3).

(5) An application by an individual for renewal of a life insurance licence shall be refused if,

(a) the applicant has held a life insurance licence for four years or more;

(b) the applicant has not passed the Level II life insurance examination; and

(c) the Superintendent is not satisfied that the agent has the qualifications tested by the Level II life insurance examination. O. Reg. 760/94, s. 7 (3).

11. (1) Any insurer that appoints an agent, either by written contract or otherwise, shall forthwith notify the Superintendent in writing of such appointment, giving the full name, address and licence number of the agent. R.R.O. 1990, Reg. 663, s. 11 (1).

(2) Where an insurer terminates its appointment of an agent, it shall forthwith notify the Superintendent in writing of the termination together with the reasons therefor. R.R.O. 1990, Reg. 663, s. 11 (2).

(3) Subsections (1) and (2) and subsection 393 (6) of the Act do not apply in respect of an agent who holds a life insurance licence if,

(a) the agent is a corporation or partnership; or

(b) the agent has held the licence for at least two years and has notified the insurer that,

(i) the agent has passed the Level II life insurance examination, or

(ii) the Superintendent is satisfied that the agent has the qualifications tested by the Level II life insurance examination. O. Reg. 760/94, s. 8.

12. (1) Where an insurer that has certified its appointment of an agent to the Superintendent terminates the appointment, the agent shall forthwith notify the Superintendent in writing of the fact and shall return the agent’s licence to the Superintendent who shall suspend the licence until the agent submits a new certificate of an insurer certifying that the applicant is appointed to act as its agent, or until the licence expires or is revoked, whichever occurs first. R.R.O. 1990, Reg. 663, s. 12.

(2) Subsection (1) does not apply in respect of an agent who holds a life insurance licence if the agent has held the licence for at least two years and,

(a) the agent has passed the Level II life insurance examination; or

(b) the Superintendent is satisfied that the agent has the qualifications tested by the Level II life insurance examination. O. Reg. 760/94, s. 9.

13. The Superintendent may suspend or revoke a licence on any grounds upon which an application for a licence may be refused or if, after due investigation and hearing, it appears to the Superintendent that the licensee,

(a) has violated any provision of the Act or of the regulations in the licensee’s operations as an agent;

(b) has made a material misstatement or omission in the application for the licence;

(c) has been guilty of a fraudulent practice;

(d) has demonstrated incompetency or untrustworthiness to transact the insurance agency business for which the licence has been granted, by reason of anything done or omitted in or about such business under the authority of the licence; or

(e) has employed an unlicensed person as an agent, whether upon salary or otherwise without having first obtained the written approval of the Superintendent. R.R.O. 1990, Reg. 663, s. 13; O. Reg. 760/94, s. 10.

14. (1) The Superintendent may suspend, revoke or refuse to renew a licence referred to in clause 393 (2) (b) or (c) of the Act if, during the term of the licence, the licensee has,

(a) carried on any business or occupation other than as an agent; or

(b) carried on the business of an agent other than on a full-time basis. O. Reg. 760/94, s. 11.

(2) The Superintendent may suspend, revoke or refuse to renew a life insurance licence if the licensee is an individual and, during the term of the licence, the licensee has carried on a business or occupation that is not in the provision of financial services. O. Reg. 760/94, s. 11.

(3) Subsections (1) and (2) do not apply if,

(a) the only other business or occupation carried on by the licensee is a business referred to in clause 5 (6) (a) or (b); or

(b) the licensee carries on the main portion of his, her or its business as an agent in a township having a population of less than 10,000 or in any other municipality having a population of less than 5,000. O. Reg. 760/94, s. 11.

(4) Subsection (2) does not apply if the licensee has held the licence for at least two years and,

(a) the licensee has passed the Level II life insurance examination; or

(b) the Superintendent is satisfied that the agent has the qualifications tested by the Level II life insurance examination. O. Reg. 760/94, s. 11.

15. Clauses 5 (1) (a) and 14 (1) (b) do not apply to an applicant who was licensed as an agent on August 15, 1986. O. Reg. 760/94, s. 11.

Exemptions from Licensing

15.1 (1) Subsection 393 (23) of the Act and section 2 of this Regulation do not apply to the following persons in the following circumstances:

1. A collector of insurance premiums who does not solicit applications for or the renewal or continuance of insurance contracts or act or aid in negotiating insurance contracts or the renewal of insurance contracts, if the collector’s collection fee does not exceed 5 per cent of any amount collected.

2. An officer or a salaried employee of the head office of a fraternal society who solicits insurance contracts on behalf of the society and does not receive any commission.

3. A member of a fraternal society who solicits insurance contracts on behalf of the society and who is not an officer or salaried employee described in paragraph 2, unless the member devotes or intends to devote more than half of his or her time to soliciting such contracts or has in the previous 12 months solicited and procured life insurance contracts on behalf of the society in an amount in excess of $20,000.

4. An officer or salaried employee of the head office of an insurer who solicits contracts of life insurance, accident insurance and sickness insurance on behalf of the insurer and who does not receive any commission.

5. A transportation company or an officer or employee of a transportation company, when acting as an agent for an insurer with respect to travel, accident and baggage insurance. O. Reg. 760/94, s. 11.

(2) Paragraph 4 of subsection (1) does not apply without the written approval of the Superintendent to an officer or employee whose application for a licence as an agent has been refused or whose licence as an agent has been revoked or suspended. O. Reg. 760/94, s. 11.

Duties of Insurers

15.2 (1) Every insurer that authorizes one or more agents to act on behalf of the insurer shall establish and maintain a system that is reasonably designed to ensure that each agent complies with the Act and the regulations. O. Reg. 760/94, s. 11.

(2) The system referred to in subsection (1) must screen each agent for suitability to carry on business as an agent. O. Reg. 760/94, s. 11.

(3) An insurer shall report to the Superintendent if it has reasonable grounds to believe that an agent who acts on behalf of the insurer is not suitable to carry on business as an agent. O. Reg. 760/94, s. 11.

(4) Spent: O. Reg. 760/94, s. 11.

16. (1) Any insurer that appoints an agent who was not licensed on the 15th day of August, 1986, either by written contract or otherwise, shall maintain records of the time worked by such agent and provide such records to the Superintendent if requested. R.R.O. 1990, Reg. 663, s.16.

(2) Subsection (1) does not apply in respect of an agent who holds a life insurance licence. O. Reg. 760/94, s. 12.

17. An agent who holds a life insurance licence shall maintain,

(a) errors and omissions insurance in a form approved by the Superintendent in an amount of at least $1,000,000 in respect of any one occurrence with extended coverage for loss resulting from fraudulent acts; or

(b) another form of financial guarantee in a form approved by the Superintendent in an amount of at least $1,000,000 in respect of any one occurrence. O. Reg. 760/94, s. 13.

18. An individual who holds a life insurance licence shall complete at least 30 hours every two years of continuing education acceptable to the Superintendent in respect of life insurance. O. Reg. 760/94, s. 13.

19. (1) An individual who holds a life insurance licence shall disclose in writing the names of all the insurers that the individual represents to every prospective insured and to every insured who makes an application to renew or replace a policy of life insurance. O. Reg. 760/94, s. 13.

(2) An individual who holds a life insurance licence shall disclose in writing the names of all the providers of financial products or services that the individual represents to every prospective purchaser of a financial product or service other than insurance. O. Reg. 760/94, s. 13.

20. An agent who holds a life insurance licence shall not,

(a) offer inducement or use coercion or undue influence in order to control, direct or secure insurance business;

(b) induce or attempt to induce an insured, directly or indirectly, contrary to the insured’s interests, to,

(i) lapse,

(ii) surrender for cash paid up or extended insurance, or other valuable consideration, or

(iii) subject to substantial borrowing whether in a single loan or over a period of time,

any contract with one insurer of life insurance that contains provision for cash surrender and paid up values for the purpose of effecting a contract of life insurance with another insurer;

(c) make a false and misleading statement or representation in the solicitation or registration of insurance;

(d) make or deliver any incomplete comparison of any policy or contract of insurance with that of any other insurer in the solicitation or registration of insurance;

(e) coerce or propose, directly or indirectly, to coerce a prospective buyer of life insurance through the influence of a professional or a business relationship or otherwise to give a preference with respect to the policy of life insurance that would not otherwise be given on the effecting of a life insurance contract; or

(f) hold himself, herself or itself out, directly or indirectly, by representation or omission, in a way that is misleading in respect of the insurers on whose behalf the agent acts. O. Reg. 760/94, s. 13.